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The government expects the Reserve Bank to pay an interim dividend by the end of this month, Economic Affairs Secretary Subhash Chandra Garg said today. In August, RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017.
It was less than half the Rs 65,876 crore it had paid in 2015-16. Since November last year, the finance ministry has been in discussions with the central bank to transfer the surplus to the exchequer. "We are expecting RBI to transfer the money by month end," Garg told reporters. According to sources, the government expects the RBI to pay a total dividend of about Rs 45,000 crore for financial year 2017-18. Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets and, contribution to staff and superannuation fund among others. RBI's profit was about Rs 44,000 crore, of which Rs 30,000 crore has been distributed and Rs 13,000 crore it has retained towards risks and reserves. So the government has made a suggestion that the Rs 13,000 crore may also be transferred, the sources said. RBI Governor Urjit Patel last month said the central bank will continue to transfer surpluses to the government in 'mechanical way' as it has been doing in the past.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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